Renewable Energy Project Finance Modeling

Course content

Develop a best-practice financial model and optimize it for both debt and equity investors for a renewable energy project finance deal. Learn from industry leaders and ivy league professors either in-person at a public session, on-site at your offices or campus, online, or our new live streaming courses.

Self Paced Online Renewable Energy Project Finance Modeling available now.

Live Streaming  online training courses

Live streaming  online training courses are as close as you get to the experience of an in-person class. Participants will develop a full financial model together with the instructors, with the ability to ask questions and seek individual support and feedback. The courses include all of the benefits of live classroom training.

The course includes:

  1. One-on-one access to our instructors
  2. Free access to the online self-paced learning version of the course
  3. 2.5 hour live sessions for 3 days a week (Tuesday-Thursday) over a 3 week period
    1. This gives you time to review concepts before the next class
    2. Or for you to dive deeper into concepts that are covered in the self-paced online course
  4. Recordings of each session
  5. Classes start at 11am New York time, so are accessible to most people in the Americas, Africa, and Europe
  6. A chance to grow your network!

Overview

Build a renewable energy project finance model from scratch

Course Outcome

Learn best practice financial modeling by doing

Understand renewable energy finance concepts and operations

Optimize the model to achieve requirements of all investors

Prepare professional outputs for decision making

Course Previews

REQUIREMENTS OF DSRA

Renewable Energy Course - Model Familiarization

What is Project Finance

OUR BLENDED LEARNING COMBINING IN-CLASS AND ONLINE MATERIAL ENSURES WE TEACH MORE AND YOU LEARN MORE. 5 DAYS OF MATERIAL IS CONDENSED INTO 3 DAYS + ONLINE CONTENT.

Course name More Info Location Start Date Cost Register
Renewable Energy Project Finance Modeling More Info Self Paced Available Now USD 800 Register
Renewable Energy Project Finance Modeling More Info FULL 14 Jul 2020 USD 3,200 Register
Renewable Energy Project Finance Modeling More Info Live Streaming 18 Aug 2020 USD 3,200 Register
Renewable Energy Project Finance Modeling More Info Live Streaming 6 Oct 2020 USD 3,200 Register
Renewable Energy Project Finance Modeling More Info Live Streaming 3 Nov 2020 USD 3,200 Register
Renewable Energy Project Finance Modeling More Info Live Streaming 1 Dec 2020 USD 3,200 Register

Contact us for on-site or on-campus pricing and options.

The cost of the online course will be credited to you if you join a public session within 12 months of purchase.

Discounts provided off the training course prices.

  • Students and non-profits are eligible for a discount of 50% (no other discounts may be added to this).  Online course price for students and non profits is $400 and interactive online  sessions $1,600.
  • Other discounts
    • Group booking of 3 or more people – 15%  Price per person for online group bookings is $680 and  interactive online $2,720
    • Early bird (interactive online sessions only ) if book 8 weeks before the course – 10%. Price per person $2,880.
  • 12 months access to our online material, including concept videos with transcriptions, lecture slides, downloadable spreadsheet examples.
  • A complete step-by-step model walk-through, and access to discussion forums for ongoing questions’.
  • Subscription can be extended annually post the first 12 months for $100 per annum.
  • Lunch, tea & coffee at the venue (public session participants only).
  • Membership to the Pivotal180 alumni network.
  • Course completion certificate.

Due to the large volume of content available, the course is suitable for all-levels – there is something for everyone.

  • Analysts, associates & vice presidents at banks, funds, investors, developers, and operating entities looking to standardize approaches to modeling or solve new problems
  • More senior participants changing careers or looking to up their skill-set
  • Students wishing to enter the renewable energy sector or about to start new roles – get ahead of your competition now
Section Overview
Pre-course material
  • Course requirements and overview
  • Excel functions required
  • Shortcuts, named ranges, and data validation
  • Best practice principles
  • Best practice – flags and accounts
  • Net present value (NPV) and internal rate of return (IRR)
Project finance introduction
  • Introduction to project finance
  • Typical investment structures
  • Tax and legal implications
  • Overall timeline and cashflow relationships
  • Major contracts and risk vs reward
  • Roles of different parties in the deal
Project finance term loans
  • Impact of leverage on a deal
  • Types of lenders and their mindset
  • Appropriate discount rates and interest repayments
  • Principal repayment options (linear, mortgage, DSCR sculpted)
  • Debt service cover ratio (DSCR)
  • Sculpting and sizing debt
  • Loan life cover ratio (LLCR) and other debt ratios
  • Bullet, balloon, and mini-perm repayments
  • Cash sweeps
  • Understanding a Facility Agreement
Generation and the grid
  • Capacity versus energy
  • Capacity factors for different technologies
  • Power curves and forecasting (coming soon)
  • Typical losses and degradation
  • Calculating P50 and P99 generation
  • Probability analysis in determining P-factors (coming soon)
  • Seasonality
  • Common risk areas and ‘things that go wrong’ (coming soon)
  • Developing the energy generation calculations
Selling energy
  • Capacity payments, energy payments and price x volume
  • Comparison of different offtakers
  • Common REC and ROC structures (coming soon)
  • Merchant tails
  • Escalation provisions in contracts
  • Scenarios and modeling a PPA with merchant tail
  • PPA contract overview
  • Alternative revenue models (coming soon)
Costs
  • Typical costs for wind and solar projects
  • Major maintenance accounts
  • Other common reserve accounts
  • Model common fixed and variable costs
  • Understanding an O&M Agreement
  • EPC costs
Waterfall and cashflow summary
  • Typical waterfall structure vs cashflow statement
  • Global differences in calculating the waterfall
  • Accounts required and the role of the administrative agent
  • Develop cashflow forecasts for P50 and P99
  • Develop data tables for scenario and sensitivity analysis
Debt service reserve account (DSRA)
  • Requirement of (and implementation of) a DSRA
  • Impact of the DSRA on debt ratios
  • The debt service facility as an alternative
  • Develop model checks to ensure compliance with loan documents
Construction phase
  • Review of an EPC term sheet
  • Completion testing required
  • Sources and uses
  • Model construction costs and understand funding challenge
  • Calculate total funding required
  • Discuss alternative drawdown orders
  • Comparison of costs to the Levelized cost of energy (LCOE) (coming soon)
Depreciation and tax
  • Straight line, reducing balance, life of asset, and MACRS depreciation
  • Model from EBITDA to EBT
  • Thin capitalization constraints on tax deductibility (coming soon)
  • Tax losses carried forward
  • Tax credits (US only)
  • State and local taxes (coming soon)
  • What happens when tax is ahead of CADS
  • International tax considerations (i.e. WHT, tax treaties)
  • Complete post tax valuations
Tax Equity
  • Inefficient versus efficient tax payers
  • Incentives for tax equity investors, including the ITC and PTC
  • Deal and flip structure
  • Back-leverage overview
  • Tax equity sizing considerations
Returns
  • Returns required for lenders, equity, and developers
  • Cap rate compression and the value in selling your project, calculating terminal values
  • Back-leverage and holdco debt to increase returns (and risk)
  • Typical valuation comparables
Core outputs
  • Comparison of accounting and tax depreciation
  • Developing an income statement and balance sheet
  • Converting quarterly calculations to annual outputs
  • Calculating working capital
  • Add deferred taxes to your model
  • Outputs required for an investment decision
Modeling quality checks
  • File structures, version control, sign-off protocols for a deal model (coming soon)
  • Data books (coming soon)
  • Tracking changes in Excel models (coming soon)
  • 15 model checks required (coming soon)
  • How do I review a model?
Optimizing a deal model
  • Solve the price required to achieve a hurdle rate
  • Size the debt required in operations and construction
  • Introduction to VBA for project finance
  • Running scenarios with VBA
  • Simplifying alternatives to avoid VBA
  • Summary of core risks with analysis

Pre-requisites

Basic knowledge of Excel only

Equipment Required

Area Items Needed
Online Course

Computer, 2 screens preferable, Microsoft Excel

Public Session

Laptop & Power cord

Public courses run from 9am – 5.30pm at a location to be confirmed post registration

Online Interactive training sessions start at 11am New York time

Range Amount
>4 weeks before the course Full Refund
1-4 weeks before the course 50% Refund
<1 week before the course No Refund

Get in touch to discuss our training or advisory services